Mubadala

As the saying goes “Variety is the spice of life”; it is an ethos very much in practice at Mubadala, Abu Dhabi’s wide-reaching investment group, with an economic interest in most facets of life.

Mubadala is a pioneering investor with the vision, scale and expertise to make a global impact.

“Proudly sovereign-owned and resolutely commercial in focus, we are accelerating the UAE’s economic growth with a bold and innovative approach to strategic investment,” states the corporate website.

The creation of Mubadala is undoubtedly linked to the vision of the late Sheikh Zayed bin Sultan Al Nahyan – who imagined a prosperous future for his people, and then brought them together as a nation to achieve it.

Mubadala is a pioneering global investor, deploying capital with integrity and ingenuity to accelerate economic growth for the long-term benefit of Abu Dhabi. As Abu Dhabi’s leading strategic investment company, the business is involved in no fewer than 13 sectors and more than 30 countries around the world, creating lasting value for its shareholder, the Government of Abu Dhabi.

The website gives more detail on the diversity of Mubadala’s interests: “Our work includes the development of global industrial champions in sectors such as aerospace, ICT, semiconductors, metals and mining, renewable energy and utilities, and the management of diverse financial holdings.

“We build on legacy expertise in oil and gas to invest across the hydrocarbon spectrum, and enhance the UAE’s growth potential through investments in healthcare, real estate and defence services. Our investment approach prioritizes partnership with best-in-class organizations and a commitment to the highest standards of governance.”

Mubadala’s business is structured around four global business platforms that together encompass its interests across 13 sectors and more than 30 countries:

“The Alternative Investments and Infrastructure platform encompasses our capital investment, healthcare, and real estate and infrastructure portfolios. Across all three sectors we see significant growth potential, which we are capitalizing on through active portfolio management and capital deployment in new and existing markets.

“Mubadala invests throughout the capital structure in a diversified portfolio of global public and private securities, pursuing a value oriented investment approach with a primary focus on the creation of long-term value and a bias towards capital preservation.

“Mubadala is helping to address the region’s most pressing healthcare needs through the creation of specialist, world-class healthcare facilities, building regional capability and stimulating the overall development of the sector,” describes the corporate website.

The Petroleum and Petrochemicals platform is a significant element to Mubadala Investment Company, building on Abu Dhabi’s rich heritage in the oil and gas sector through investments in 13 leading companies that operate across the hydrocarbon value chain.

“Comparative in scale to some of the larger global integrated oil and gas companies, the primary goal of our Petroleum and Petrochemicals platform is to maximize value, while contributing to the ongoing diversification and internationalization of the Abu Dhabi economy,” the company states.

“Once petroleum resources have been extracted and undergone initial processing to separate and stabilize them, our midstream operations oversee the transportation of oil and gas to end-users or plants, where they are processed further. At this stage, crude oil and other liquids such as gas condensates, are sent to refineries through pipelines, by ship or truck. Gas may be transported via pipelines, or liquefied and shipped as liquid natural gas (LNG) for re-gasification close to end-users. Storage is also required for both oil and LNG.

“In the final phase of the value chain, known as downstream, crude oil is refined to produce fuels such as gasoline, diesel and kerosene, while oil and gas products are processed into various materials that are used to make plastics and a wide variety of chemicals such as the base for detergents.

“Mubadala’s upstream operation focuses on finding and extracting oil and gas in locations across the globe. The process includes securing exploration rights in promising areas and identifying specific prospects for exploration drilling. Successful identification of commercial deposits leads to project development and eventually production. Our portfolio of world-class international companies comprises integrated assets covering multiple sectors, or the entire value chain, and a wealth of expertise across various areas,” the site continues.

Mubadala also operates a The Technology, Manufacturing and Mining platform which is helping Abu Dhabi to create new industrial sectors in the UAE. The platform operates as the centre of advanced technology and the creator of industrial champions in critical value chains such as aluminium, copper, zinc and gold.

Through building a globally diversified set of metals and mining businesses, Mubadala is positioning the UAE in fast-growing resource markets while supporting continued growth in domestic manufacturing and the creation of high-skilled jobs.

The company has also invested in a semiconductor industry in anticipation of a digital future where the ‘Internet of Things’ will see further proliferation in the use of the microchip and global demand for semiconductors will continue to increase.

Another important area of investment is the company’s Aerospace, Renewables and Information & Communications Technology (AR&I) platform which helps accelerate diversification of the Abu Dhabi economy through strategic investments across five sectors – Aerospace, Renewables, ICT, Utilities and Defence Services.

The platform incorporates 25 businesses in total, which are predominantly home grown, globally renowned companies operating in growth industries. Companies in the AR&I platform pride themselves on deep-rooted partnerships with global players and a strong pipeline of UAE national talent through Science, Technology, Engineering and Mathematics (STEM) education and training initiatives.

Mubadala, in partnership with Tawazun, is a shareholder in Emirates Defence Industries Company (EDIC), an integrated national defence services and manufacturing platform launched in 2014.

The company is investing in a global portfolio of world-class and transformative information and communications technology assets, while working to provide high-tech employment opportunities within cognitive computing, ICT infrastructure, telecoms, and satellite operations.

With demand for energy supply on the increase, Mubadala is advancing the development, commercialization and deployment of renewable energy solutions and clean technologies, establishing Abu Dhabi as a global centre of excellence in the renewable energy and clean technology sector.

Mubadala is also meeting requirements for sustainable, energy-efficient and innovative district cooling, thermal power generation and water desalination through a portfolio of utilities businesses in the UAE and the broader region that deliver sustainable economic returns while providing essential services to millions of end-users.

“Our portfolio of utilities businesses includes power plants in Algeria and Oman as well as district cooling facilities across the region through our holding in Tabreed, one of the world’s largest district cooling companies based in Abu Dhabi,” the website indicates.

With such a diverse portfolio, Mubadala’s impact and success is reliant on forging long-standing partnerships across the globe, with organisations demonstrating expertise in each sector. These partnerships encompass a broad range of business initiatives and areas of joint cooperation with such leading businesses as GE, The Carlyle Group, Total, Imperial College London, Boeing and Airbus.

The results are impressive and in June 2017, International Petroleum Investment Company (IPIC) published its Full Year 2016 audited Financial Results. IPIC turned to a net profit of US$403.8 million in 2016 from a loss of US$2.6 billion a year earlier, driven by lower feedstock costs, high petrochemicals industry margins, and lower impairments across the Group.

IPIC’s portfolio, which since 1st May 2017 is part of Mubadala Investment Company following the merger of IPIC and Mubadala Development Company, includes assets operating across the energy value chain, from upstream oil and gas to petrochemicals, along with a portfolio of diversified investments.

For the period ending 31 December 2016 revenues were US$ 33.8 billion compared to US$ 35.8 billion in 2015, primarily impacted by lower oil prices, while operating profit was US$ 1.9 billion compared to a loss of US$ 3.6 billion in 2015, the increase was primarily driven by lower impairments for the Group during 2016 reporting period.

Net profit was US$ 403.8 million compared to a loss of US$ 2.6 billion in 2015. The move to net profit was primarily driven by improved industry margins positively impacting the performance of its portfolio, and lower impairments across the Group.

The previous month saw Mubadala Investment Company make a US$15 billion commitment to the Softbank Vision Fund, a major technology and innovation focused fund, alongside a consortium of leading investors. The investors are joining forces to create value from the significant wave of technological change and innovation that is transforming global industries and societies.

The Softbank Vision Fund, managed by Softbank Group Corp., announced that it has become fully operational by raising over US$93 billion in committed capital from investors including the Public Investment Fund of the Kingdom of Saudi Arabia, Apple Inc., Foxconn, Qualcomm, Sharp Corporation and SoftBank Group Corp.

The Fund will invest in and support leading companies and exceptional entrepreneurs building software, hardware, and internet platforms in areas such as connectivity, data analytics, artificial intelligence, new forms of computing, and deep science applications. The Fund will look for opportunities in how these applications are impacting major global industries including manufacturing, healthcare, financial services, space, and transportation.

Khaldoon Khalifa Al Mubarak, Group Chief Executive Officer & Managing Director, Mubadala Investment Company, said: “Our participation in the SoftBank Vision Fund perfectly complements Mubadala’s strategy as a long-term global investor and partner to the technology sector’s high-growth companies. Technology and innovation are central to the UAE’s economic diversification strategy, helping to create entirely new economic sectors and career pathways. We believe the Vision Fund has the scale, expertise, and investors to deploy capital and support the growth of leading technology companies and entrepreneurs.”

Mubadala continues to invest in developments that will not only shape the future of Abu Dhabi but the world.